U.S. Inflation Remains Stubborn, Traders Continue to Bet on Rate Cut in July

BlockBeats News, March 28th, data shows that in February, the Fed's preferred inflation gauge continued to rise at a stubborn pace, while personal spending month-over-month fell short of expectations, indicating weaker-than-expected household demand. This suggests that consumers are becoming more cautious amid mounting concerns about their financial situation. Following the data release, stock index futures further declined, and bond yields remained at low levels. Derivative traders continue to expect two 25-basis-point rate cuts this year, with the first rate cut expected in July.

Today's report indicates that stubborn inflation is hard to shake off, and Trump's planned tariffs could further exacerbate price pressures. His aggressive trade policy has already undermined confidence among businesses and consumers, coupled with signs of increasing financial pressures on households, raising concerns about the economy possibly slipping into stagflation or even recession. (Fx678)